Godawari Power & Ispat (GPIL) reported stable revenue for H1 FY26, backed by increased pellet and galvanized product volumes. EBITDA and PAT margins remained healthy at 22% and 14% respectively. The company’s 2 million ton pellet capacity expansion is nearing completion, with commissioning targeted by the end of November 2025. GPIL plans a 1 million ton integrated steel plant, pending iron ore mining capacity expansion.
Financial Performance Highlights
Godawari Power & Ispat Limited (GPIL) reported consistent performance in H1 FY26, marked by operational progress. Revenue remained stable, supported by higher pellet and galvanized product volumes. EBITDA and PAT margins were recorded at 22% and 14%, respectively, despite softer realizations across product ranges.
In Q2 FY26, production increased, with mining rising by 29% and pellet production by 31%. Pellet sales surged by 71%. Consolidated financial performance for H1 saw largely stable sales turnover, aided by higher production and sales of pellets and galvanized products.
Operational Updates and Expansion
GPIL is on track to meet its FY26 production targets despite a production loss of about 40 days due to an incident on September 26, 2025. The company preponed its maintenance shutdown, originally due in Q3 FY26.
The company’s 2 million ton pellet capacity expansion is progressing as planned, with pre-commissioning trials underway and commissioning targeted by the end of November 2025, awaiting consent from the State Pollution Control Board.
Land acquisition for iron and steel capacity expansion is complete, with 452 acres secured for the integrated steel plant and CRM complex. The 0.7 million tons cold rolling mill complex project is progressing well.
Strategic Investments and Renewable Energy
GPIL proposes to set up a 1 million ton integrated steel plant post iron ore mining capacity expansion. Godawari New Energy Private Limited, a wholly-owned subsidiary, plans to set up a 10 gigawatt battery energy storage system (BESS) project in Maharashtra, with land acquisition complete. The cost is INR700 crores, funded by debt and internal accruals.
The Board has approved an additional 250-megawatt solar power capacity for captive use in the CRM project and integrated steel plant, expected to be commissioned by Q4 FY27. Operations at Boria Tibu mine resumed in May 2025. Global iron ore prices have moved within the $95 to $110 range this year, currently around $102-$103 a ton.
Outlook and Future Plans
GPIL remains focused on scaling mining and pellet capacities, strengthening downstream capabilities, and deepening renewable energy integration. By 2026, India’s steel demand is expected to be nearly 75 million tons higher than in 2020.
Source: BSE